Ron Littlepage: Tensions at budget hearings to worsen in Jacksonville

For the past several years, budget hearings before the City Council’s Finance Committee have been — let’s opt for a polite term — tense.

This year’s installment is no different with most of the committee members holding firm to the belief that the budget proposed by Mayor Alvin Brown is severely out of whack.

Listening to what the committee members say during the hearings tells the story of their frustration.

After a lengthy exchange last week with the Brown administration over how money was moved around in one department, Councilman John Crescimbeni said, “It’s ridiculous budgeting is what it is.”

Finance Committee Chairman Richard Clark spoke up after an administration official muddled through an explanation.

In what was the equivalent of throwing his hands up in disgust, Clark said, “The last 30 minutes of my life I could have gotten back. Instead we get this song and dance.”

The growing frustration has spilled over to Council Auditor Kirk Sherman, whose job is to make sense of the proposed budget and to offer recommendations to the committee.

He clearly wasn’t happy that with the administration’s top budget officials sitting in the audience, a lower-level employee was sent to the podium to try to answer the committee’s questions.

“Hanging a junior person out to dry is not a class act,” Sherman said.

Are you getting a sense of the tension?

If not, tack on what Crescimbeni had to say when another confusing budget item came up: “This is crazy. What a mess.”

A big area of concern for committee members is the jump in debt that Brown is proposing.

The banking fund, where some would say debt is hidden out of sight and out of mind, will have increased from zero when the fund began in 2008 to more than $800 million six years later if all of the proposed spending is approved.

The “scary part,” Clark said, is debt is being used for things the city should pay cash for — new roofs, paving roads, etc.

“The trajectory we are on is radically unsustainable,” he said.

Councilman Bill Gulliford chimed in: “All we are doing is kicking the can down the road.”

He then took a poke at Brown, who has steadfastly opposed raising taxes.

“Is there such a thing as a borrow and spend liberal?” Gulliford asked.

Another flashpoint arose over the increased costs brought on by the improvements made recently to EverBank Field.

The bill for adding more temporary seating for the Florida-Georgia game went up dramatically as did the electric bill for operating the new giant scoreboards.

“We continually deal with the ramifications of bigger and better,” Clark said. “When we do that, our expenses are going to go up.”

But that didn’t soothe the ire of Crescimbeni, who recalled being told the stadium improvements wouldn’t increase costs substantially.

“I’m tired of that stuff,” he said.

The bottom line is just like in the past, there’s not enough money to go around.

The committee is also looking down the road at a pension deal that could cost the city an additional $40 million a year for 10 years.

Then there’s the proposed dredging of the St. Johns River shipping channel.

When Brian Taylor, JaxPort’s CEO, explained the port’s budget to the committee last week, he said the city’s share of that massive project will “probably be in the range of $180 million over five years.”

Add to all of the above the fact that Brown is proposing to spend $37 million of one-time money to balance the next fiscal year’s budget, something most committee members are loathe to do.

After three weeks of budget hearings, the Finance Committee is still about $34 million short of a balanced budget if it sticks with not relying on one-time money.

To make cuts that deep would require reducing employees, a lot of them.

The tension in the previous meetings will be like a walk in the park if that process begins.

Wait until the council votes tomorrow night to put the 5th pension board member issue on the ballot. It will kill the pension deal and Jacksonville's pension contribution will skyrocket. The city's credit rating will drop again. The pension issue will end up in federal court for the next 3-5 years. Crescimbeni, Gulliford and Bishop are using this and other issues for political gain. They don't care what it will do to the city as they will be off the council when payment comes due. Might I add they will be collecting a pension at no coat to them for a part time job no less. Watching them, and Boyer, at council meetings would make you laugh if it wasn't so serious.

Some of the answers, or perhaps the real questions are outside of the Council chambers. Why is Jacksonville not experiencing more of the recovery as are other parts of the state? With all of the talk about millage, why is there not more emphasis on the effect of that recovery on raising property values (and revenues), rather than raising millage? A case in point is to note relatively low millage rates in more affluent cities.

A recent article on debt collections, which specifically mentioned Jacksonville, noted the effects of "income stagnation". Whether it is reduced revenue because of declining or stalled property values, or declining sales tax revenue from a workforce (consumers) on which the effects of that income stagnation have an effect on how much they spend, it all affects the City budget.